Alcohols are a family of chemicals with slightly different properties, depending on the number of carbon atoms. A molecule of methanol has a single carbon atom, ethanol has two, and butanol four. Because of this, butanol has a higher energy content (92% of that of gasoline) than ethanol or methanol.

It is impossible to predict at this point whether any of these three, or some combination, will become a dominant and preferred fuel option. All can be made from renewable biomass, however, and thus all have a similar potential to reduce oil consumption and improve environmental quality.

Biobutanol – butanol made from biomass – can be produced with the same feedstocks as ethanol but with a modified fermentation and distillation process. Butanol can be used in standard vehicles in gasoline blends up to 16%, and it can be distributed by pipeline more easily than ethanol, because it mixes less easily with water. Like methanol, it is poisonous. Butanol can also enhance low-level ethanol blends by reducing their evaporative emissions. Unlike ethanol, butanol can be easily blended with diesel. Recently, BP and DuPont announced that they would partner to produce a “next generation” of biofuels, beginning with biobutanol in 2007.

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Methanol is commonly called “wood alcohol.” It can be made from biomass but is now chiefly made from natural gas. Production of methanol is one way to make use of remote natural gas that might not otherwise be brought to market. It has about half the energy content of gasoline and about three-fourths the energy content of ethanol.

Like ethanol, methanol is a high-octane, high-performance fuel used by race car drivers. Both methanol and ethanol can be used with higher compression ratios than gasoline. This can result in an increase in horsepower of up to 15%.

The U.S. methanol industry has shrunk from 18 production facilities producing 2 billion gallons of methanol per year in 1998 to four facilities producing 300 million gallons of methanol in 2005. Giant facilities are being built where there is access to cheaper natural gas, including Trinidad and Tobago, Chile, Venezuela, and Oman. The fastest-growing market for methanol in the world is in China, which plans to build as many as 80 coal-based methanol facilities.


• Unlike grain alcohol, methanol is not suitable for drinking. Indeed, its toxicity has led to concern about its suitability for widespread commercial use. (Fuel ethanol is made undrinkable by the addition of 2-5% gasoline.)

• Methanol fuel cells are seen as a possible longer-lasting alternative to batteries for laptop computers and other consumer electronics.


Biobased alcohols can be blended with isobutylene (derived from petroleum or natural gas) to make liquid fuels called ethers – methyl tertiary butyl ether (MTBE) from methanol or ethyl tertiary butyl ether (ETBE) from ethanol. These ethers are attractive blending components because of their high octane and because in blends they reduce the volatility of gasoline, decreasing evaporation and smog formation. In addition, gasoline blended with ethers can be shipped through conventional oil pipelines.

For many years lead was used to increase the octane of gasoline, and, when it was phased out for health reasons, oil companies chose to replace it with MTBE, starting in 1979. The use of MTBE increased in 1992 with the introduction of new clean-air requirements. Unfortunately, MTBE does not biodegrade easily and has been found in ground water throughout the country. In some instances it has contaminated sources of drinking water. Even low levels of MTBE can make drinking water supplies undrinkable due to its offensive taste and odor. As a result, in September 1999, the EPA Blue Ribbon Panel on Oxygenates in Gasoline recommended that the use of MTBE be reduced substantially (with some members supporting its complete phase-out).

Several states banned the use of MTBE, and oil companies sought legal protection against lawsuits involving MTBE. When Congress failed to provide that protection in the Energy Policy Act of 2005, the oil industry largely abandoned MTBE and turned instead to ethanol.

ETBE is another alternative and is used elsewhere, notably in France. However, ETBE has not yet been adopted in the U.S., perhaps because of uncertainty about its persistence in the environment and concerns about its effect on ground water.

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